Mortgage Help

funkyfi

Me and my partner are currently in the process of selling our own homes to get a joint mortgage. We are planning to use equity from my partners house as a deposit.

However I am currently in a debt management plan for unsecured debt which I am slowly paying off. Due to my credit rating my partner is going to take the mortgage in his own name but I will contribute towards it. Does this cause any problems for him getting a mortgage, or does taking a single mortgage mean only one person can stay in the house?

GMS

funkyfi wrote: »

Me and my partner are currently in the process of selling our own homes to get a joint mortgage. We are planning to use equity from my partners house as a deposit.

However I am currently in a debt management plan for unsecured debt which I am slowly paying off. Due to my credit rating my partner is going to take the mortgage in his own name but I will contribute towards it. Does this cause any problems for him getting a mortgage, or does taking a single mortgage mean only one person can stay in the house?

Should not cause a problem on it's own. As long as all criteria is met it should be fine. You would need to be declared as an occupier and sign an 'Occupier's Consent Form' on completion.

funkyfi

GMS wrote: »

Should not cause a problem on it's own. As long as all criteria is met it should be fine. You would need to be declared as an occupier and sign an 'Occupier's Consent Form' on completion.

Thanks GMS. Do you know whether my contribution towards bills could be counted as income for the mortgage?

My previous would be for us to take a joint mortgage but think the Bank's might laugh at my credit rating!

GMS

funkyfi wrote: »

Thanks GMS. Do you know whether my contribution towards bills could be counted as income for the mortgage?

My previous would be for us to take a joint mortgage but think the Bank's might laugh at my credit rating!

Your contributions could not be used as income.

Have you spoken to your current lender about the situation? You maybe able to stay with them and add your partner to the mortgage.

Worth a phone call to see what they say.

Alternatively speak to a 'Whole of Market' broker to find the best way forward.

koexelek

funkyfi wrote: »

Thanks GMS. Do you know whether my contribution towards bills could be counted as income for the mortgage?

My previous would be for us to take a joint mortgage but think the Bank's might laugh at my credit rating!

Your income will not be counted at all if you are not a party to the mortgage.

You are probably right about your credit rating. The lenders are very unforgiving at the moment of any form of missed payments

funkyfi

GMS wrote: »

Your contributions could not be used as income.

Have you spoken to your current lender about the situation? You maybe able to stay with them and add your partner to the mortgage.

Worth a phone call to see what they say.

Alternatively speak to a 'Whole of Market' broker to find the best way forward.

I have considered this and spoke to my lender. They said he could be added for a fee and would do another credit score. I am scared to do that given I am sitting at a poor credit score although none of credit issues are anything to do with my mortgage and relate to only credit card debt. I also don't want my partners credit rating to be ruined because of the mess I got myself into if we went ahead and did not pass.